DEPOT COLLECTIONConsultation Workshop

RECYCLE BC CONSULTATION

NOVEMBER 15, 2017

WORKSHOP AGENDA

Presentation

• Background and context

• Agreements – Timeline for changes

• Agreements – Proposed changes

• Agreements – Proposed payment structure and rates

Q & A Period

Break

Roundtable Sessions

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BACKGROUNDDepot Collection

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DEPOT COLLECTORS

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Collector Type Number of Depots

Local Government 108

First Nations 5

Private Company 88

Retail Location 50

Total 251

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Recycle BC Depots

AGREEMENTSTimeline for Changes

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AGREEMENTS – TIMELINE FOR CHANGES

Agreements – Master Services Agreement and Depot Statement of Work

Current agreements

• 5 year terms, two optional one year extensions

• Majority expire Nov 30, 2018

New Agreements

• 5 year terms

• Proposal – extend existing agreements by one month

• January 1, 2019 – December 31, 2023

• Offer to collectors – Summer 2018

• Offer includes final draft of agreements, payment structure and rates

• Timeline provides opportunity to incorporate feedback from consultation

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AGREEMENTSProposed Changes

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PROPOSED CHANGES - BACKGROUND

All changes are proposals only – feedback welcome

Recycle BC proposing changes pertaining to:

• Operations

• Communications

• Customer service

Workshop to focus on:

• Concepts and proposals, not detailed legal language

Workshop excludes housekeeping type changes:

• Clarification of implied intent

• Improved terminology to reduce confusion

• Removal of irrelevant requirements (e.g. reporting tonnage to Recycle BC)

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PROPOSED CHANGES - RATIONALE

Changes are being proposed and guided by the following rationale:

• Operational efficiency and effectiveness

• Value for Recycle BC stewards

• Addressing operational challenges - collection and post-collection

• Environmental responsibility

• Fostering accountability

• Balancing needs of all stakeholders, including residents

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PROPOSED CHANGES – CROSS CONTAMINATION 1

Introduce defined thresholds for cross contamination

• E.g. plastic containers in paper/cardboard stream

• Cross contamination is significant operational issue

• Paper/cardboard markets are becoming increasingly stringent

• Not addressed by current agreements

• Threshold rate to be defined – feedback welcome

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PROPOSED CHANGES – CROSS CONTAMINATION 2

Introduce defined thresholds and penalties for cross contamination in segregated glass

• E.g. plastic containers in segregated glass stream

• Increases post-collection cost

• Reduces ability to market glass

• Requires diversion of glass away from “bottle to bottle” type markets

• Threshold and penalty rate to be defined – feedback welcome

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PROPOSED CHANGES – INSURANCE REQUIREMENTS

Reduce the Comprehensive General Liability coverage limit from $5 million to $2 million.

• Current limit requirement is $5 million

• Recycle BC has determined $2 million will be sufficient moving forward

• Collectors may still wish to have limits greater than $2 million

• Requirement to list Recycle BC as additional insured remains

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PROPOSED CHANGES – MATERIAL STORAGE

Provide Recycle BC with the right to require collected material be stored in such a way that material quality is not impacted by inclement weather, such as rain and snow.

• Rain and snow can negatively impact program by:

• Degrading material quality

• Reducing marketability

• Inflating material weights

• Storing material under cover ensures adequate protection

• Focus on paper, cardboard and foam packaging

• Recycle BC intent is only to action where problems arise

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PROPOSED CHANGES – STAFFING

Provide further clarification on responsibilities of depot staff

• Depots must be sufficiently staffed to ensure:

• Interaction with residents – contamination reduction and ICI segregation

• Regularly check program material

• Remove improperly sorted and unacceptable material

• Intent of staffing requirements are included in current agreements, proposal is to make them more explicit

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PROPOSED CHANGES – PROMOTIONAL MATERIALS

Recycle BC can exercise its right to require advance approval of significant promotion and education materials

• Examples include:

• Depot signs

• Advertisements

• Website content

• Primary concern is accuracy and consistency

• Recycle BC templates are available but not mandatory

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AGREEMENTSProposed Payment Structure and Rates

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PAYMENTS – PLASTIC BAGS, FOAM, AND GLASS

Collection of plastic bags, foam and (often) glass is critical to all depots, given exclusion from curbside/multi-family programs

Common feedback – rates for plastic bags/foam need to be increased given:

• Low weight and density

• Operational challenges

• Resident education and sorting

Recycle BC proposal

• Plastic bags/overwrap – Increase rate from $175/tonne to $500/tonne

• Foam packaging – Increase rate from $175/tonne to $600/tonne

• Glass containers - Increase rate from $80/tonne to $90/tonne

Apply to all depot groups

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PAYMENTS – DEPOT GROUPS

Current payments differentiate between two groups:

1 – Depots “with curbside”

• Located in communities with curbside PPP – e.g. Vancouver, Kelowna

2 – Depots “without curbside”

• Located in communities without curbside PPP – e.g. Cranbrook, Kitimat

Original rationale – “with curbside” provides increased value to residents without other collection options

Issue – Location of depot is not always a reflection of type of service majority of customers actually have

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PAYMENTS – PROPOSED DEPOT GROUPS

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GROUP 1 GROUP 2 GROUP 3

No curbside/multi-family collection program

Private depot with curbside/multi-family collection program

Local government/First Nations depot with curbside/multi-family collection

All or large portion of customers do not have curbside/multi-family collection

All or vast majority of customers have curbside/multi-family collection

All or vast majority of customers have curbside/multi-family collection

Managed by private companies, local governments or First Nations

Privately owned depots contracted directly to Recycle BC

Managed or contracted by local government or First Nation

Rates for plastic bags, foam packaging and glass are at same rate for all 3 groups

Approach to paper, cardboard and containers differs by group

PAYMENTS – PAPER, CARDBOARD, AND CONTAINERS 1

Proposed changes apply to Group 3 - LG/FN with Curbside/Multi-Family

Proposal – eliminate payment for paper, cardboard and containers

All or vast majority of customers have:

• Curbside or multi-family PPP collection

• Unlimited volumes of paper, cardboard and containers accepted at their resident’s collection site

• Weekly or biweekly collection at household

Depot collection:

• Duplication of service

• Drives up cost/tonne of curbside/multi-family program

• Increased environmental footprint

• Less convenient for resident

• ICI materials

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PAYMENTS – PAPER, CARDBOARD, AND CONTAINERS 2 Options for Group 3 - LG/FN with Curbside/Multi-Family

1. Direct to curbside/multi-family

• Recycle BC’s preferred option

• Paper, cardboard and containers no longer accepted at depot

• Direct residents to make use of curbside/multi-family service – unlimited volumes at residence collection site

• Most efficient, no duplication of service

2. Manage independently

• Accept paper, cardboard and containers but manage and market independently of program

• Voluntary decision to duplicate service – cannot alternate option based on market conditions

3. Collect under Recycle BC program without incentives

• Accept paper, cardboard and containers

• Recycle BC would pick up at depots, manage post-collection including processing – no payment for collection

• Requirements on contamination, ICI etc. will apply

Recycle BC agreements would reflect option chosen – could not alternate without Change Order

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PAYMENTS – PAPER, CARDBOARD, AND CONTAINERS 3

Group 1 – No curbside/multi-family

• Paper, cardboard and container collection required as customers do not have other collection options

• Increase in payment rate for containers to $130/tonne

Group 2 – Private with curbside/multi-family

• No change to collection of paper, cardboard and containers

• Majority are bottle depots – value-add for boxboard especially given use for deposit returns

• Not in same position as local govts to influence resident behaviour or market materials

Group 1 and 2

• Increase in baled rate for paper/cardboard to $110/tonne

• Introduction of baled rate for containers at $110/tonne

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PAYMENTS – PROPOSED RATES

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Proposed Incentive Rates ($/Tonne)

Material Grouping Material Categories Group 1 – No Curbside/Multi-

Family

Group 2 – Private with

Curbside/Multi-Family

Group 3 – LG/FN with

Curbside/Multi-Family

AdditionalIncentive If Baled

Paper and cardboard

Cat 1/Cat 2/Cat3b/Cat 1,2,3b

$80 $60 $0 or n/a $110

Containers Cat 3a/Cat 6/Cat 7/Cat 3a,6,7

$130 $90 $0 or n/a $110

Plastic Bags & Overwrap

Cat 4 $500 $500 $500 $330

White Foam Cat 5 $600 $600 $600 $330

Coloured Foam Cat 5 $600 $600 $600 $330

Glass Containers Cat 8 $90 $90 $90 n/a

OTHER FLEXIBLE PACKAGINGProposed Collection Model

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OTHER FLEXIBLE PACKAGING

Other flexible packaging

• Made up of multiple layers of flexible plastic, film, paper, nylon and/or aluminum foil

• Examples – stand up pouches, chip bags, cereal bags, candy wrappers, crinkly wrap etc.

• Currently excluded from Recycle BC program

Upcoming sessions at this consultation:

• Thursday 10 am – Session 5, Room 2

• Thursday 12:30 pm – Session 6, Room 2

Collection Proposal:

• Depot collection as segregated material stream in own collection containers

• Separate from plastic bags/overwrap and other materials

• Voluntary trial by interested depots – April 1, 2018 at $175/tonne

• Mandatory collection by all depots – Jan 1, 2019 at $500/tonne

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QUESTIONS

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QUESTIONS

Questions, not statements for feedback

Feedback – opportunity in round table sessions

Participants are asked to limit questions to:

• One question at a time

• Clarifying questions

• Requests for rationale or further explanation

• “Did you consider..”

Raise hand and microphone will be brought to you

Webinar – written questions will be read aloud

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FEEDBACKRound Table Sessions

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FEEDBACK

Online feedback – Form on Recycle BC website until Dec 15

Round table sessions

• 6 discussion group topics

• One table per topic

• “Vote with your feet” – join table that best corresponds with topics you’d like to discuss

• 3 sessions of 20 minutes each – opportunity to switch topics

• Some topics may be split or combined depending on numbers at each

• Designate facilitator and note-taker

• Brainstorm ideas on flip charts

• Capture consolidated feedback on table booklet

• Recycle BC staff available to answer questions and assist

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DISCUSSION GROUPS

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Table # Recycle BCSupport

Topic Category

1, 2 & 3 Brendan Payments Private Depots: Structure and incentive rates

5, 6 & 7 Jordan Payments LG/FN Depots: Structure and incentive rates

9 Tiffany Contamination: Cross contamination, sorting, rejecting contamination

11 Tiffany Materials – Materials accepted and excluded, other flexible packaging, ICI

13 Kathleen Operational requirements – staffing, storage of materials etc.

15 Kelly Customer service – Promotional materials, communicating with residents

17 Alex Reporting – Claim reports, EFT remittance reports

DISCUSSION QUESTIONS

What feedback do you have on the changes proposed?

What elements of the proposals do you support or consider fair/advantageous? Why?

What elements of the proposals do you NOT support? What are your primary concerns?

What alternatives would you suggest?

What issues or topics do you feel were not addressed? What is your feedback on those?

Where should Recycle BC go from here?

What outstanding questions or requests for further information do you have?

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230-171 Esplanade West

North Vancouver, BC V7M 3J9

778-588-9504

Making a difference together.

RecycleBC.ca @RecycleBC @RecycleBC

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